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Steven Hassan

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It's Time to End the Church of Scientology's Tax-Exempt Status

Posted: 04/28/10 04:18 PM ET

For more than 25 years, the IRS denied tax-exemption to the Church of Scientology. The long-running policy flowed from an IRS determination in 1967 that Scientology was in fact a commercial entity operated solely for the benefit of founder L. Ron Hubbard.

In 1993, seven years after Hubbard's death, the IRS made a puzzling and highly suspicious reversal. It settled its tax bill with Scientology for just $12.5 million and conferred on it the title of tax-exempt "religion." Both the Wall Street Journal and New York Times later broke important ground with respective reports on the secret meetings that led to the agreement, and details of Scientology's harassment of IRS officials.

Hubbard has been gone for nearly a quarter century, but the questionable practices of extracting huge fees from members, paying lip service to informed consent and employing violence, threats and unfair labor tactics to protect its interests continue today under Scientology leader David Miscavige.

And of course its roster of celebrity ambassadors -- Tom Cruise, John Travolta, Kirstie Alley and others -- continues a mission of mainstreaming the fringe thinking behind the Scientology phenomenon.

All charitable organizations are subject to regular examination and review by the IRS to ensure they are still entitled to tax exempt status. Both the IRS and the US Department of Justice have more than ample grounds to conduct respective probes of the organization's non-charitable profiteering and other abuses. Emerging stories of violence, abuse and control occurring at Scientology facilities should be enough to get the attention of Attorney General Eric Holder.

They are getting the attention of the public. On a recent CNN program, former high-ranking Scientologists Marty Rathbun and Amy Scobee detailed how Miscavige used beatings and other acts of violence to intimidate subordinates. In her recent memoir, My Billion Year Contract, Nancy Many recounts how she became near-psychotic during her 27 years as a high-level Scientologist.

Marc Headley, once an elite member, earned a paltry 39 cents an hour when he was assigned to Scientology's multimedia operation. He earned more in his first year outside of Scientology than during the 15 years he was a member.

These brave folks are not the first to tell the truth about Scientology.

Ex-Scientologist and Hubbard biography researcher Gerry Armstrong was harassed and persecuted for more than 25 years for speaking out about the organization. Among the various positions Armstrong held during his dozen years as a Scientologist was that of intelligence and public relations officer for the Sea Organization, Scientology's "elite" pseudo-military management group. In 1982, Scientology sued him. Ironically, it was this lawsuit that exposed the "church" for what it really is.

"Scientology is nothing in reality but a vast enterprise to extract the maximum amount of money from its adepts by pseudo scientific theories ... and to exercise a kind of blackmail against persons who do not wish to continue with their sect," wrote California Superior Court Judge Paul G. Breckenridge, Jr.

"In addition to violating and abusing its own members' civil rights, the organization over the years ... has harassed and abused those persons not in [Scientology] whom it perceives as enemies. The organization clearly is schizophrenic and paranoid, and this bizarre combination seems to be a reflection of its founder."

On civil rights alone Scientology's track record is abysmal, having long ago met the threshold for violation of federal "Title 18" statutes.

A legitimate religious organization does not use physical, mental, emotional and financial abuse to maintain membership. Nor does it function as a conspiracy to threaten and intimidate others. A valid religion informs people of church doctrine and beliefs before they make a commitment to join. A religious group with even the most basic ethics does not use its constituents as slave labor to reproduce and perpetuate its teachings.

It's pretty simple. American tax codes are wrongly benefiting and empowering the unethical, potentially illegal, and most assuredly uncharitable activities of an organization using "religion" as a cloak.

freedomofmind.com/

 

Follow Steven Hassan on Twitter: www.twitter.com/cultexpert

For more than 25 years, the IRS denied tax-exemption to the Church of Scientology. The long-running policy flowed from an IRS determination in 1967 that Scientology was in fact a commercial entity ope...
For more than 25 years, the IRS denied tax-exemption to the Church of Scientology. The long-running policy flowed from an IRS determination in 1967 that Scientology was in fact a commercial entity ope...
 
 
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02:13 AM on 05/27/2010
Kudos for writing this piece. I really don't understand why this isn't a front page story. People should be outraged that the con game known as scientology is still tax exempt in the united states.
02:24 PM on 05/15/2010
Yes, using emotional and physical intimidation is wrong. It is even worse when the most dedicated people inside the organization are used with little or no pay to support the functioning of an organization. Who do they think they are, the Catholic church? Next they'll be asking for their own country.
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AZreb
equal-opportunity Independent heathen
07:43 AM on 05/03/2010
Whoops - sorry about that - meant to type "religious" but my fingers didn't catch up.
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AZreb
equal-opportunity Independent heathen
07:43 AM on 05/03/2010
Maybe it is time to take away the tax-exempt status of other rligious groups, too. Too many of them are nothing but big businesses.
09:59 PM on 05/24/2010
I agree!
But, obviously poeple are bord.
03:45 AM on 05/03/2010
I never post on here, but I feel too strongly about this issue. No other religion asks members for money to learn the core foundation of its religion. If this is truly a religion,it should be for free. The late Issac Hayes joined the "Church" of Scientology and opened up learning centers to teach disadvantaged youths to read FREE OF CHARGE! I'm Muslim. I can go to any mosque and pick up a Koran or attend a service for free! I know the tenants of Islam and all the beliefs of Sunnis and Shias for FREE. A lot of people on here and focusing on Catholics, but they are missing the point. To be a catholic, you dont need to spend $1 million ala Jason Beghe to learn Christ's teachings. That's why they have tax exempt status.Unless youre a Sea Org Slave, you have to be loaded to be a Scientologist. I've even heard that some lady sea org members have to strip because they're paid $20 a month..what kind of religion is that? Monks, nuns and priests are at least taken care of and not treated like animals. If they want to believe Hubbard and the OT3 that's fine, but make it accessible to all of makind for free.Even some cults pass out pamphlets and let you know their objects for free before you become indoctrinated..sheesh
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hagagaga
You can't take the sky from me.
11:57 PM on 05/02/2010
They are not a non-profit organization.
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10:34 PM on 05/05/2010
Not true, the cult of Scientology was created money for its leaders.
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HUFFPOST SUPER USER
ProudObamacan
A Real Republican - not a Right Wingnut
10:30 PM on 05/02/2010
Wasn't the idea behind tax free status so that religions would not have to worry about loosing their property. Now that most if not all major religions are major businesses and rack in millions if not billions in contributions and profits, I think they should be taxed. It is a great revenue producer. If they are truly non-profti, maybe tax free status - but...
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09:32 PM on 05/02/2010
This is one of the best articles on the subject of Scientology's tax-exempt status neeeding to be recinded. Thank you to Mr. Hassan, a knowledgeable and courageous man.
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LMPE
I connect the most dissimilar things
08:30 PM on 05/02/2010
I can't understand why anyone would want to join that cult. Hell, it's the 21st century, so why would anyone want to be part of any religion?
06:49 PM on 05/01/2010
I absolutely love when someone assails scientology and it's criminal tax-exempt status then turns around and says "yeah, I'm a [christian][jew] and yeah my church has tax-exempt status". The christian church's status is just as 100% illegitimate and criminal as scientology - look at the catholic church. It takes in billions of dollars, pays NO taxes and they're the biggest pedophile haven in the world. Defend that.
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Tequilatarian
08:07 PM on 05/01/2010
Most replies I have seen here say tax them all.
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KirkVox
Eat your vegetables!
12:51 PM on 05/02/2010
Do you think Catholicism should lose it's tax exempt status?
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grailknight
is happily godless
10:33 PM on 05/02/2010
Indeed! As well as all the rest.
02:38 PM on 05/03/2010
They should be in line before the Scientologists. Marching into the U.S. Congress making demads on a health care bill, collecting money in Maine to fight gay marriage, Rome calling the Speaker of the House of Representatives in the United States House of Representatives--and that's just the last few months. And that doesn't include what they do every week during an election--and don't tell me they don't. Lobbying against legislation and funding the fight against legislation is not what they are supposed to be doing.

And there is no reason in the world why they should get 100 million dollars from the government of the U.S. for disaster relief. We have the Red Cross, and other organizations that can do that job. You can be your fanny that when the bus pulls up--it says Catholic Charieties--not U.S. taxpayers.
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c-tom
Badges we don't need no stinking badges
04:35 PM on 05/01/2010
I find it amusing that it took the IRS 7 years after L Ron's death to determine Scientology was not "a commercial entity operated solely for the benefit of founder L. Ron Hubbard."
04:22 PM on 05/01/2010
This is all very true. The problem is the attorney general will not act unless there is political pressure and where will that come from?
03:36 PM on 05/01/2010
The "church" claims it's a religion when it suits them then claims it's a technology when it doesn't... either way they're lying, it's just a crock...
03:32 PM on 05/01/2010
I don't see what David Miscovich's violence against his church members has to do with the tax issue. Islam beats its members too, but it's a religion all the same. Sorry, I'd like to take away their tax break too, but I don't see how this will do it.
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Tequilatarian
04:44 PM on 05/01/2010
Islam beats their members?
Well...if a sect of islam in the US beats its members, the people responsible can be charged and removed hopefully. There is more than one sect of islam in the US and the world, so one cannot go after islam because one sect commits illegal acts. Just like Jim Jones did not represent all christians.
But there is only ONE scientology*. And the beatings are not the IRS issue. The money making, the human trafficking, the coerced abortions...which are endemic throughout the Sea Org...is closer to the issue. Miscavige could be removed, but the basic corrupt core of scientology that L Ron Hubbard created would still be a scam that does not deserve any tax breaks.

People that have left organized scientology due to abuse (and are still crazy enough to think L Ron Hubbard had some neat ideas) have reformed in groups collectively known as the freezone, which scientology wants to not exist . But as far as I know, freezone groups are not tax exempt (but please correct me if you know differently)
09:06 PM on 05/01/2010
From your post: "fAnd the beatings are not the IRS issue."-- Right. THAT'S WHAT I SAID.
02:28 PM on 05/15/2010
Sharia?
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03:17 PM on 05/01/2010
I saw a bumpersticker the other day that said, "When religion ruled the world it was called the Dark Ages". Scientology is like a modern day Dark Age religion - cruel, overbearing & despotic